Novartis Issues Cautious View for 2012

Novartis AG said its profit will decline this year because of competition from generic-drug makers, continued price cuts and the need to invest in innovative therapies.

The Swiss drug maker, which is trying to balance the sales decline stemming from the expiration of its blockbuster heart drug Diovan, issued the cautious 2012 earnings outlook as it reported a 47% drop in fourth-quarter net profit.